Episode 116 | “Womenomics” and investing for longevity

Episode overview

In this episode of Investments Unplugged, hosts Kevin Headland and Macan Nia mark International Women’s Day by exploring longevity through the lens of women and financial preparedness. They’re joined by Director, Multi-Asset Solutions Erica Camilleri, who shares thoughts and research on why longevity risk is higher for women, how today’s macroeconomic backdrop (including higher cross-asset correlations and persistent inflation) can amplify retirement risks, and what investors can do—through better planning, appropriate risk-taking, and sound advice—to reduce the odds of outliving their savings.

 

Key topics & insights

1. Longevity risk and why it’s higher for women

• Financial shortfall risk gap — Manulife research found that women in Canada face a higher risk of experiencing financial shortfalls in retirement than men do (34% vs. 29%).
• It’s not just living longer — Longevity risk stems from a mix of longer (and rising) life expectancies, plus structural and social factors that can reduce lifetime savings and increase retirement vulnerability.

2. Health, wealth, and “longevity preparedness”

• Health and wealth are intertwined — The conversation emphasizes that longevity preparedness isn’t only about financial issues; for example, poor health can worsen retirement outcomes and vice versa.
• New tools and frameworks — The “longevity preparedness index” is designed to measure readiness to thrive while aging in retirement and is expected to expand into Canada in coming years.

3. The role of incentives and behaviour change (and why it matters for outcomes)

• Incentives can drive better habits — The episode highlights research over decades indicating that specific goals outperform vague “do your best” goals and discusses how incentive-based programs can encourage healthier behaviour (and, by extension, better long-term outcomes).

4. Structural inflation is still a long-term retirement risk

• Inflation has moderated cyclically but remains structurally higher — Even if inflation trends toward central bank targets, the episode argues households are still living with a higher price level and that long-run inflation may settle in the mid-to-high 2% range rather than the pre-pandemic norm.
• Retirement math is sensitive to small inflation shifts — A modest upward shift in expected inflation (example discussed: +40 bps) can materially raise required savings/asset levels for retirement (example cited: a 30-year-old might need ~19% more assets).

5. Portfolio construction challenges: higher correlations and concentration risk

• Diversification is harder when correlations rise — The hosts discuss higher correlations within equities and between equities and fixed income, plus increased market concentration—factors that can make portfolios more vulnerable to shocks.
• Longevity risk is amplified by portfolio risk — In a “fluid” market backdrop, managing drawdowns and sequence-of-returns risk becomes more important for sustaining long retirements.

6. Mitigating longevity risk: saving earlier, compounding, and appropriate risk

• Start early; small changes matter — The conversation stresses the power of compounding and the outsized impact of starting earlier (even with small incremental improvements).
• Avoid being overly conservative — The episode argues many investors (especially in defined contribution plans) are too conservative, and that growth asset exposure is critical to reducing shortfall risk over multi-decade retirements.
• Rethinking retirement glidepaths — Erica explains their approach avoids a static asset allocation through retirement, allowing for more growth exposure early in retirement given retirements can last decades.

7. Advice, planning, and using the right tools (including RRSPs)

• Financial advice early helps — A repeated theme is that advice earlier in life helps investors understand opportunities, risks, and the need for money to last throughout retirement (and potentially leave a legacy).
• Tax-advantaged tools matter — The hosts reference prior discussions on RRSP benefits and how tax savings can compound and support retirement resilience.

·

 

Actionable takeaways for Canadian investors

• Plan for a longer retirement than you think: Build your plan around the possibility of a multi-decade retirement (the episode references retirements that could stretch to ~40 years).
• Don’t ignore inflation in long-range assumptions: Stress-test your retirement plan for slightly higher long-term inflation; even small changes can require meaningfully higher savings.
• Prioritize time in the market (compounding): If you’re early in your career, focus on starting now—small contribution increases made earlier can have an outsized impact later.
• Be deliberate about risk—not automatically conservative: Review whether your portfolio is too cautious for your horizon (including early retirement), since insufficient growth can increase shortfall risk.
• Diversify with today’s correlation regime in mind: Recognize that diversification may be less reliable when equity/fixed income correlations rise; ensure your portfolio isn’t overly concentrated in a few exposures.
• Use advice and tax tools to improve outcomes: Consider getting financial advice earlier and make full use of retirement vehicles (e.g., RRSPs) where appropriate to improve after-tax compounding.
•  

Links & Resources

• Listen to the episode:Investments Unplugged Podcast
• Learn more about Manulife Investments:Manulife IM Canada

Share & Subscribe

If you enjoyed this episode, please share it with your network and subscribe for future insights on markets, investing, and portfolio strategy.

 

For informational purposes only. This episode does not constitute investment advice. Please consult a qualified advisor before making investment decisions.